Sher Tremonte Secures Complete Dismissal of Class Action Claims against Manufacturing CEO
On September 29, 2023, the U.S. District Court for the Eastern District of New York granted Sher Tremonte’s motion to dismiss a class action lawsuit brought against the firm’s clients under Sections 14 and 20 of the Securities and Exchange Act. The lawsuit alleged that Sher Tremonte’s clients, the founder and CEO of China XD Plastics Company (a leading manufacturer and provider of high polymer plastics to the automotive industry) as well as subsidiary entities of China XD, were liable for alleged losses resulting from alleged misrepresentations and omissions in a 2020 proxy statement. The Court granted the motion in its entirety and dismissed the securities law causes of action with prejudice. The case was handled by partners Michael Tremonte and Mark Cuccaro and associate Raphael Friedman.
Read the full opinion here.